How to Have a Profit Rate Above 20% - Four StepsTuesday, September 26, 2017—Recipe for a 20% Bottom Line (Super-Performing Companies) Intro: We took a close look at companies that deliver 20% or more to the bottom line, to find out how they do it. Here's what we found. With the rise of analytics, super-performing companies are emerging, and they're becoming a significant portion of the market. An astounding 9% of companies we looked at have profit rates above what was a top rate only five years ago — more than triple the rate of an average business. These companies convert more than 20% of their revenue to bottom line profit. Some of them, much more. We decided to take a close look at what these companies were doing that put them so far ahead of the market. We found four specific markers for super-performing companies: 1. they are really good at the core competence of a distribution company – moving product 2. they had few locations – eliminating duplication 3. they used a super-efficient and effective sales force model 4. they used analytics extensively to pursue opportunities and to drive decision-making We also found their high profit performance comes at the expense of their competitors. They identify and take the most profitable accounts, while ceding the losers, doing great damage to their opponents in the market. Why it Matters: Nearly every company needs to become a super-performer, or they'll be harmed by someone who is. Our clients use deep analytics from WayPoint to be some of the most profitable companies in the world. They know the customers with which they have money-losing dysfunctional relationships, the products that are unprofitable because of how they're sold, and are actively eliminating the losing activities. At the same time, they know the relationships and products that drive extraordinary profits, and they're maximizing sales in those areas. Takeaway: Your company needs to deepen its analytics, so your people can capitalize on super-profitable relationships, and optimize those that are not. Both your success, and your survival may depend on it. |
You've Lost Your Biggest Account – Now What?Everyone eventually faces the loss of a significant account. Sometimes big enough that "normal" operations are no longer feasible. Profit-Driven Customer ServiceThere's a direct link between high profits and second-tier customer service. This is how you use it to make more money. Customer Service – How Companies Get It So WrongMathematically, half of all companies have below-average customer service. There's a fifty-fifty chance yours is one of them. Here's why most companies don't The Customer Benefits Budget: Engineering Customer RelationshipsBalancing the internals of a customer relationship is the gateway to aggressive pricing and great customer service. Accounts That Eat Your LunchAlmost every company is quite profitable, or would be if it wasn't for a handful profit-killing accounts. Why Counter Sales are Killing Your Profits & What to Do About ItCounter Sales are perpetually amongst the biggest money-losers in distribution. It's a bigger issue than companies without advanced analytics realize, and repr The Customer Service TrapCompanies hurt themselves when they go for "great customer service". Here's why. How to Make (a Lot) More Money: Profit-Driven Business StrategyA numbers-driven strategy to focus strategically on profit production takes companies to the top. Adopt their strategy and win. Mix & Balance: How to Get Big Profit GainsRapid and permanent profit gains come from focusing on mix and balance. Driving these elements produces great cash-flow & record profits. Fast Track to Permanent Profit Gains: Trading CustomersThe most powerful profit-producing strategy for sales is trading customers. This video reveals why this is. Money-Making vs Money-Losing Sales: Finding Hidden ProfitsIf you want to put your company on track to high profits, extraordinary cash flow, fast growth, and market leadership, this is what you need to know. Where to Focus Your Efforts for Fast Profit GainsEvery sale has three dimensions that determine its profitability: volume (or size of the sale); margin (amount of operating cash generated above the cost of the High-Leverage Accounts: The Gateway to High Profit RatesPart of a series on profit-value segmentation, the High-Leverage Accounts are vital the fast profit gains. Fast Track to Profits: Eliminating DuplicationA relentless focus on avoiding and eliminating duplication guarantees higher profit rates. |